Finance Ministry to review ECLGS progress on Feb 22

New Delhi, Feb 20 (KNN) A meeting has been called by the Finance Ministry to review the work of the emergency credit line guarantee scheme (ECLGS) for MSMEs on February 22, 2023. 

It will be attended by the heads of public sector banks and top four private sector lenders. 

They will also review the Loan Guarantee Scheme for COVID-Affected Sectors (LGSCAS).

Financial Services Secretary Vivek Joshi will chair the meeting and it would see participation from top private sector lenders HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank.

One of the important point on the agenda is to discuss the extension of ECLGS and LGSCAS beyond March 31 as well as their challenges.

Finance Minister Nirmala Sitharaman in the latest Budget announced that the revamped scheme will take effect from April 1, 2023 through the infusion of Rs 9,000 crore in the corpus.

"This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about 1 per cent,” she added.  (KNN Bureau)